If a business owner owes multiple creditors, has judgments, etc, financing is probably not possible.
A consultant can do little to help this business.
“ Our counselors will work with a company to develop an overall plan, but if the company has limited cash flow and is seriously in debt, there is little we can do.” - Ken Yancey CEO SCORE. Counselors to America’s Small Businesses Do Any Of These Options Help A Business Owner With Serious Debt? Part One: Overview
None of their educational materials include negotiating small business debts.
We’ve co–branded guides with the Association of Small Business Development Centers (ASBDC) and SCORE to help small business owners get out of debt on their own and understand common mistakes in business debt negotiation.
Can these guides help?
What About Their Educational Materials? Can they help a struggling small business? Part One: Overview
Our program is designed to help small businesses with serious cash issues
satisfy their creditors, keep their business open and avoid bankruptcy.
We help resolve their delinquent debts by:
Establishing a monthly budget which they can realistically afford to pay.
Prioritizing the debts based on the leverage of each of their creditors.
Negotiating repayment terms with the creditors within the available budget.
Corporate Turnaround’s Debt Restructuring Program Part Two: What We Do
Deadbeats Our Customers Slow Payers Dead & Dying
Able to pay – Unwilling to pay
Description: These debtors will not pay voluntarily – only when forced to pay
Unable to pay – Unwilling to pay
Description: These debtors are out of business or will be soon
Action: Close the file
Unable to pay – Willing to pay
Description: Debtors with serious financial problems who are looking for a viable way to pay their creditors based on what they can afford
Action: Refer these files to CT
Able to pay – Willing to Pay
Description: As long as they are paying, they are part of this group, regardless of difficulty
Action: Keep collecting
OPPOSITES In Order to Effectively Collect, Creditors Needs to Determine the Type of Debtor That Would Benefit From Debt Restructuring Part Three: Identifying Candidates
Which Delinquent Businesses Are Candidates For Our Program? Delinquent Businesses that: Part Three: Identifying Candidates
Have under $20MM in annual revenues.
Want to pay their debts right now, but cannot afford to.
Have not paid.
Break payment plans.
Frequently ask you for extensions.
Take your call, but never send payments.
Want to stay in business.
Are out of options.
Are running out of time.
Benefits To a Creditor’s Delinquent Customers Our Debt Restructuring Program can help small businesses:
Spend less time dealing with creditors, collection agencies and attorneys.
Satisfy creditors with what they can afford.
Part Four: Benefits to a Creditor’s Customers
Reduce the debt and/or stretch it out over time.
Reduce or eliminate unnecessary legal costs.
Keep businesses open and avoid bankruptcy.
When you introduce a debtor to Corporate Turnaround that becomes a paying client, there are four crucial benefits to our: Creditor Alliance
If you are holding any type of lien on assets such as equipment vital to the survival of the debtor’s business - CT can help the debtor to restructure the debts of the subordinated creditors therefore reducing your need to liquidate the asset.
If you are holding any type of lien on assets which are not vital to the survival of the debtor’s business or you are an unsecured creditor - Our Highest Priority Creditor Program helps debtors pay you favorably ahead of other creditors. As the Highest Priority Creditor, you will receive settlement offers before the other creditors, and your offers will be more favorable than those received by the other creditors.
You will gain valuable information about the debtor at no cost to you - Even if the debtor chooses not to use our services, you’ll know how to proceed on the debt for the best chances of recovery.
What Value Does a Creditor Get From Our Debt Restructuring Program?
You won’t pay us any collection costs or legal fees - We make our money from the debtor, not you. You can get paid from accounts that probably could not have paid you otherwise.